Nvidia is preparing to oust Jensen Huang

Nvidia's Board of Directors is reportedly considering removing co-founder and CEO Jensen Huang due to the emergence of two extramarital affairs. The Wall Street Journal reports that the company's directors could convene as early as November 11 to deliberate on Huang's future. If Huang were to leave, he would be the second CEO in Nvidia's 33-year history.

The company's stock plummeted by 8% in after-hours trading following the revelations. An independent investigation into the matter was initiated by the board on November 8. The New York Times recently disclosed that Huang allegedly had an affair with Nvidia's Vice President of Healthcare, Kimberly Powell, who works directly under him.

Huang and Powell were reportedly seen together at a San Jose hotel during Nvidia's GTC conference in March. This follows a previous report that Huang had a relationship with a Chinese businesswoman, Alice Huang, suspected to be a Chinese intelligence asset. Nvidia's code of conduct explicitly acknowledges personal relationships as potential conflicts of interest, but it does not explicitly prohibit relationships between managers and subordinates.

Huang's potential departure would be the first CEO transition in the company's 33-year history, prompting immediate concern as Nvidia lacks a successor with Huang's caliber. While interim CEO Colette Kress could potentially fill the role, it remains uncertain how Wall Street would react to this scenario. Nvidia co-founder Chris Malachowsky and other board members, though knowledgeable about the company's history and culture, are unlikely to succeed Huang due to lack of recent executive experience.

In Sunday's statement, directors expressed confidence in Huang's leadership, a comment that does not assure his continued tenure.